US President Joe Biden’s administration has added 37 companies from China’s mining, solar and textile sectors to its list of those banned from exporting to the US due to alleged forced labor practices in the Xinjiang region.
The firms include mining giant Zijin Mining Group (紫金礦業) and solar companies such as a subsidiary of JA Solar Technology Co (晶澳太陽能科技), a statement from the US Department of Homeland Security said.
The list also includes textile manufacturer Huafu Fashion Co (華孚時尚) and 25 of its subsidiaries.
Photo: AP
US and European companies have been under pressure to pull away from factories that make clothes and other products in the Xinjiang region. Labor groups have documented alleged forced labor camps and other poor working conditions involving the local Uighur population. China disputes these claims.
The additions represent the largest single expansion of the Uyghur Forced Labor Prevention Act list since the law was passed in 2021, and bring the total number of companies banned to 144, the statement said.
Major Chinese solar companies have already started switching to more expensive polysilicon from Western countries to eliminate risks linked to the law and import ban. As for JA Solar, the impact of its addition to the US list is expected to be limited as the subsidiary closed last year and did not supply directly or indirectly to the US, a note by BofA Global Research said.
“That said, this serves another reminder that Chinese solar will face rising trade headwinds especially in the US,” BofA Global said.
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